Perishability is a term often used in the tourism industry to describe the unique nature of travel products and services. In simple terms, perishability refers to the fact that travel products and services cannot be stored or inventoried for future use. Once a flight has taken off or a hotel room has been vacated, that opportunity to sell that specific product or service is lost forever.
Why is Perishability Important in Tourism?
Perishability is important in tourism because it creates a sense of urgency for travelers to book their trips sooner rather than later. If someone waits too long to book their trip, they run the risk of missing out on availability or having to pay higher prices due to supply and demand.
Examples of Perishability in Tourism
Here are some examples of how perishability affects different aspects of the tourism industry:
Flights
Airlines have a limited number of seats available on each flight. Once those seats are sold, they cannot be sold again for that specific flight. This means that if someone waits too long to book their flight, they may not be able to find availability or may have to pay higher prices due to limited supply.
Hotels
Hotels also have a limited number of rooms available each night. Once those rooms are sold, they cannot be sold again for that specific night. This means that if someone waits too long to book their hotel room, they may not be able to find availability or may have to pay higher prices due to limited supply.
Tours and Activities
Tour companies and activity providers also face perishability issues. They have limited capacity for each tour or activity they offer.
Once all spots are filled, they cannot be offered again for that specific time slot. This means that if someone waits too long to book their tour or activity, they may miss out on the opportunity altogether.
Strategies for Dealing with Perishability
Because of the nature of perishability in tourism, it’s important for businesses to have strategies in place for dealing with it. Here are a few common strategies:
Revenue Management
Revenue management is a strategy that involves adjusting prices based on supply and demand. This means that businesses may charge higher prices during peak travel seasons or when availability is limited.
Dynamic Pricing
Dynamic pricing is a strategy that involves adjusting prices in real-time based on supply and demand. This means that businesses may offer lower prices during slower times to encourage more bookings.
Overbooking
Overbooking is a strategy that involves selling more seats or rooms than are actually available. This can be risky because if too many people show up, the business may not be able to accommodate everyone. However, it can also be a way to maximize revenue by filling as many spots as possible.
- In conclusion, perishability is an important concept in the tourism industry. It creates a sense of urgency for travelers to book their trips sooner rather than later and affects aspects such as flights, hotels, tours, and activities. Businesses must have strategies in place such as revenue management, dynamic pricing, and overbooking to effectively deal with perishability.
With these strategies in place, businesses can effectively manage their perishable inventory while maximizing revenue and providing memorable experiences for travelers.